A federal government-backed feasibility study into a critical minerals processing facility in Tasmania will get underway in a bid to boost the state’s downstream processing potential.
Tasmania secured a federal funding agreement for the study on Monday, making it the latest state to explore a Common User Processing Facility (CUPF).
Western Australia is already progressing a feasibility study into a similar $200 million facility after securing funding from Canberra, while Queensland has recently broken ground.
Business, Industry and Resources minister Felix Ellis on Monday said the feasibility study would initially explore a CUPF (or multiple CUPFs) for tin — which is on Australia’s critical minerals list –and tungsten.
“This study will help us understand whether a common user hub for critical minerals makes sense for Tasmania, and what opportunities it could create for local jobs and businesses,” he said.
Tin and tungsten are “considered the most feasible due to past mining activity and the size of the reserves”, according to tender documents for the feasibility study sighted by InnovationAus.com.
But the government has not ruled out other critical and strategic minerals, citing the recent rescue package for Nystar, which will see the company “explore possible production of antimony, bismuth, tellurium, germanium and indium”.
“Tasmania has deposits of most critical minerals and strategic materials, though many are not likely sufficient to support mining operations in the current climate,” the documents add.
The feasibility study is expected to bring together industry, government and other expert consultations to identify potential locations for a CUPF, where multiple companies will be able to test and conduct mineral processing.
The final report is expected to be handed to the federal government by mid-May 2026, with a maximum of $340,000 to be provided for the work, according to the tender issued by the Department of State Growth.
“A Common User Processing Facility could unlock enormous potential, whether by enabling new mines to open, value-adding to ores that currently leave the State or by fostering new downstream industries,” Mr Ellis added.
“We know Tasmania has the critical minerals that the world needs to power the global shift to modern technologies, from renewable energy and batteries to defence and advanced manufacturing.
“By investing in this study, we’re positioning Tasmania as a key player in these global supply chains.”
Do you know more? Contact James Riley via Email.